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Leave Carry-Forward and Encashment Rules

The Ministry's March 2026 answers on worker leave carry-forward and encashment, with state-law limits noted.

These are the Ministry of Labour and Employment's answers as of 16 March 2026. The FAQ distinguishes a worker's Code-based rights from potentially more favourable state-law benefits; it is not a universal payroll calculator.

Rule summary · verified 2026-10-10

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TopicOfficial summary
Carry-forwardA worker may carry forward up to 30 days; leave applied for but not granted may be carried forward without that limit
EncashmentThe FAQ says a worker is entitled to leave encashment and states no maximum encashment limit under the OSH&WC Code, 2020
Refused leaveLeave above 30 days that was applied for but not granted may be encashed
State lawThe Ministry says an employee is entitled to a more favourable state-law benefit where it applies

What changed since last year

The FAQ published in 2026 explains the Labour Codes implemented on 21 November 2025; check the applicable state law rather than assuming it was displaced.

In plain language

Keep the leave ledger, the dated application, the employer's response, and the applicable state rule. Ask HR to identify whether the policy applies to you as a worker under the Code.

Official sources